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SBI Card Q4FY22: PAT sees over 3-fold jump, asset quality improves significantly

As of March 31, 2022, the company's gross NPA and net NPA were at 2.22% and 0.78% respectively compared to 4.99% and 1.15% as of March 31, 2021. (Pradeep Gaur/Mint)Premium
As of March 31, 2022, the company's gross NPA and net NPA were at 2.22% and 0.78% respectively compared to 4.99% and 1.15% as of March 31, 2021. (Pradeep Gaur/Mint)

  • For full-year FY22, the company's net profit stood at 1 616.14 crore versus 984.52 crore in FY21 - registering 64.16% growth. Meanwhile, revenue stood at Rs10, 677.27 crore up by 14.85% from 9,296.46 crore in FY21.

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Gurugram-based credit card and payment solutions provider, SBI Cards and Payment Services garnered more than a three-fold jump in its net profit for the quarter ending March 31, 2022 (Q4FY22) period. On year-on-year, revenue recorded double-digit growth.

The company posted a PAT of 580.86 crore in Q4FY22 - skyrocketing by 3.3 folds compared to a profit of 175.4 crore witnessed in the same period last year. Q4 PAT jumped by 50.6% from 385.78 crore recorded in the preceding quarter.

Revenue from operations stood at 2 850.31 crore in Q4FY22 higher by 22.91% from 2,319.01 crore from Q4 of the previous fiscal. Revenue was marginally lower from 2 889.46 crore witnessed in Q3FY22.

Notably, total income increased by 548 crore or 22% to 3,016 crore for Q4 FY22 versus 2,468 crore for Q4 FY21, the increase is primarily due to higher income from fees & services and interest income in Q4 FY22.

Further, earnings before credit costs increased by 233 crore or 25% to 1,172 Cr for Q4 FY22 versus 939 crore for Q4 FY21.

Total Operating cost increased by 291 crore or 23% to 1,577 crore for Q4 FY22 from 1,285 crore for Q4 FY21, the increase is due to higher business volumes in Q4 FY22.

The bank witnessed a significant improvement in its asset quality during the quarter under review. The Gross non-performing assets were at 2.22% of gross advances as of March 31, 2022, as against 4.99% as of March 31, 2021. Net non-performing assets were at 0.78% as against 1.15% as on March 31, 2021.

Other key metrics are:

1. New accounts volume was at 1,002k for Q4 FY22 up by 27% as compared to 791k for Q4 FY21.

2. Card-in-force grew by 16% to 1.38 crore as of Q4 FY22 versus 1.18 Cr as of Q4 FY21.

3. Total spending grew by 51% to 54,134 crore in Q4 FY22 against 35,943 crore in Q4 FY21.

4. Market share FY22 (till Feb’22) – Card-in-force was at 18.9% (FY21: 19.1%), while spends at 19.2% (FY21: 19.4%); and transactions at 19.8% (FY21: 19.7%).

5. Receivables grew by 25% to 31,281 crore as of Q4 FY22 versus 25,114 crore as of Q4 FY21.

6. RBI RE was at 287 crore - less than 1 % of receivables in Q4 FY22.

For full-year FY22, the company's net profit stood at 1 616.14 crore versus 984.52 crore in FY21 - registering 64.16% growth. Meanwhile, revenue stood at Rs10, 677.27 crore up by 14.85% from 9,296.46 crore in FY21.

SBI Card stated that as of March 31, 2022, the Company holds a total expected credit loss on loan balances of 1,094.12 crore (versus 1,654.55 crore as of March 31, 2021) which includes a management overlay of 50.56 crore (versus 296.94 crore of March 31, 2021).

On Friday, SBI Card shares finished at 829.75 apiece down by 1.44% on BSE.

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